Consolidated third quarter revenue of $290.9 million decreased $68.6
million, or 19%, compared to last year. All three segments recorded
decreased revenue in the quarter primarily as a result of the energy
and mining sector related slowdowns in western Canada. The Equipment,
Power Systems and Industrial Components segments reported revenue
declines of 28%, 16% and 6%, respectively.

Net earnings for the quarter of $7.5 million decreased $3.6 million,
compared to $11.1 million recorded in 2014. The lower earnings were
attributable to the decrease in revenue, which was partially mitigated
by a $3.4 million reduction in selling and administrative expenses.
Equipment segment earnings were $1.7 million lower than the previous
year and included a $2.8 million gain on the monetization of mining
truck inventory. Power Systems segment earnings decreased $4.3 million
on reduced revenue. Industrial Components segment earnings increased
$1.1 million despite lower sales, however, 2014 segment earnings
included $3.1 million of restructuring costs.

Basic earnings per share of $0.38 for the quarter decreased from $0.66
per share recorded last year. The reduction is attributable to lower
net earnings and the $0.07 per share dilutive effect of the 3,197,000
common shares issued on June 12, 2015 in connection with the
Corporation's bought deal equity financing.

Consolidated backlog at September 30, 2015 of $156.1 million decreased
$15.1 million compared to $171.2 million on June 30, 2015 on declines
in all three businesses.(2)

Funded net debt of $167.5 million at September 30, 2015 was essentially
unchanged from June 30, 2015.(2)

Wajax declared a quarterly dividend of $0.25 per share payable on
January 5, 2016 to shareholders of record on December 15, 2015.

Outlook

Commenting on third quarter results and the Corporation's outlook for
the remainder of 2015, Mark Foote, President and CEO, stated:

"Third quarter results were below our expectations. Our western Canada
businesses experienced a further deterioration in revenues and earnings
as increasingly difficult conditions in the energy sector had a
negative effect on customers in this and related markets. While all
three segments were impacted by these difficult conditions, the effect
continued to be most significant in the Equipment and Power Systems
segments. Sales programs in other regions, intended to partially
offset the effect of the west, did not deliver the expected results due
to market and competitive factors. The Industrial Components segment
recorded an increase in segment earnings after accounting for $3.1
million of restructuring costs recorded last year. Excluding these
restructuring costs, related reductions in the segment's selling and
administrative cost base and volume gains in a variety of sectors
mitigated some of the negative effects of the slow western Canada
market.

Reductions in consolidated selling and administrative costs of $3.4
million in the quarter and volume related service personnel staffing
adjustments partially mitigated the earnings impact of lower third
quarter volumes. The 2014 restructuring efforts in the Industrial
Components segment continue to result in a significantly lower cost
base, while at the same time improving our sales effectiveness. In the
Equipment and Power Systems segments, we have reduced our western
Canada workforce by approximately 15% in response to soft market
conditions. In the Power Systems segment, our plan relating to the $2.1
million second quarter restructuring provision, combined with other
cost reduction activities completed to date, is expected to result in
annualized savings of $7.4 million. Given our expectation that
challenging market conditions will continue to negatively affect
revenue, we are in the process of reviewing additional areas of cost
reduction which are expected to begin taking effect in 2016.

As communicated last quarter, cash was generated from the monetization
of the six mining trucks previously in inventory. However, further
deterioration in western Canada end markets has delayed our
expectations for significant working capital and debt reduction into
2016. We will continue to focus on prudently managing assets employed
in the business in response to these conditions.

We are committed to achieving our five year compounded annual earnings
growth rate objective of a minimum of 7.5%. Our confidence is based on
the elements of our 4 Points of Growth strategy, which include
improvements in our core capabilities, organic growth programs,
acquisitions and systems investments. In addition, we see opportunities
to enhance earnings through further cost reductions and improvements in
organizational effectiveness and markets in central and eastern Canada
continue to offer the Corporation excellent growth opportunity. While
we expect improvements in western Canada to eventually be a positive
factor in our growth, our focus is on executing our strategy such that
we are not dependent on that recovery to achieve our goals. We are very
pleased with how our team continues to respond to current conditions
and we are well positioned to be a stronger growth company as our
outlook period progresses."

Wajax Corporation

Wajax is a leading Canadian distributor engaged in the sale, rental and
after-sale parts and service support of equipment, power systems and
industrial components, through a network of 124 branches across
Canada. The Corporation is a multi-line distributor and represents a
number of leading worldwide manufacturers across its core businesses.
Its customer base is diversified, spanning natural resources,
construction, transportation, manufacturing, industrial processing and
utilities.

Wajax will Webcast its Third Quarter Financial Results Conference Call.
You are invited to listen to the live Webcast on Tuesday, November 3,
2015 at 1:30 p.m. ET. To access the Webcast, enter www.wajax.com and click on the link for the Webcast on the Investor Relations page.

Notes

(1)

Segment earnings before finance costs and income taxes.

(2)

"Consolidated backlog" and "funded net debt" are financial measures
which do not have a standardized meaning prescribed under generally accepted accounting
principles (GAAP), and may not be comparable to similar measures presented by other issuers. The
Corporation's Management's Discussion and Analysis (MD&A) includes additional information regarding
these financial measures, including definitions, under the heading "Non-GAAP and Additional GAAP
Measures".

Cautionary Statement Regarding Forward Looking Information

This news release contains certain forward-looking statements and
forward-looking information, as defined in applicable securities laws
(collectively, "forward-looking statements"). These forward-looking statements relate to future events or the
Corporation's future performance. All statements other than statements
of historical fact are forward-looking statements. Often, but not
always, forward looking statements can be identified by the use of
words such as "plans", "anticipates", "intends", "predicts", "expects",
"is expected", "scheduled", "believes", "estimates", "projects" or
"forecasts", or variations of, or the negatives of, such words and
phrases or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved. Forward looking statements involve known and unknown risks,
uncertainties and other factors beyond the Corporation's ability to
predict or control which may cause actual results, performance and
achievements to differ materially from those anticipated or implied in
such forward looking statements. There can be no assurance that any
forward looking statement will materialize. Accordingly, readers
should not place undue reliance on forward looking statements. The
forward looking statements in this news release are made as of the date
of this news release, reflect management's current beliefs and are
based on information currently available to management. Although
management believes that the expectations represented in such
forward-looking statements are reasonable, there is no assurance that
such expectations will prove to be correct. Specifically, this news
release includes forward looking statements regarding, among other
things, our cost reduction activities, including our restructuring of
the Power Systems segment and the expected savings therefrom, as well
as our review of additional cost reductions which are expected to begin
taking effect in 2016;our expectation that challenging market
conditions will continue to negatively affect our revenue; the delay of
significant working capital and debt reductions into 2016; our
continued focus on prudently managing our assets; our commitment to
achieving our five year compounded annual growth rate objective; our
confidence in our 4 Points of Growth strategy and our focus on its
execution; our ability to enhance earnings through further cost
reductions and improvements in organizational effectiveness; our
expectation that markets in central and eastern Canada continue to
offer the Corporation excellent growth opportunity; and our view that,
as our outlook period progresses, we are well positioned to be a
stronger growth company. These statements are based on a number of
assumptions which may prove to be incorrect, including, but not limited
to, assumptions regarding general business and economic conditions; the
supply and demand for, and the level and volatility of prices for, oil
and other commodities; financial market conditions, including interest
rates; our ability to execute our renewed long-term growth strategy,
including our ability to develop our core capabilities, execute on our
organic growth priorities, complete and effectively integrate
acquisitions and to successfully implement new information technology
platforms, systems and software; the future financial performance of
the Corporation; our costs; market competition; our ability to attract
and retain skilled staff; our ability to procure quality products and
inventory; and our ongoing relations with suppliers, employees and
customers. The foregoing list of assumptions is not exhaustive.
Factors that may cause actual results to vary materially include, but
are not limited to, a deterioration in general business and economic
conditions; volatility in the supply and demand for, and the level of
prices for, oil and other commodities; a continued or prolonged
decrease in the price of oil; fluctuations in financial market
conditions, including interest rates; the level of demand for, and
prices of, the products and services we offer; levels of customer
confidence and spending; market acceptance of the products we offer;
termination of distribution or original equipment manufacturer
agreements; unanticipated operational difficulties (including failure
of plant, equipment or processes to operate in accordance with
specifications or expectations, cost escalation, our inability to
reduce costs in response to slow-downs in market activity,
unavailability of quality products or inventory, supply disruptions,
job action and unanticipated events related to health, safety and
environmental matters), our ability to attract and retain skilled staff
and our ability to maintain our relationships with suppliers, employees
and customers. The foregoing list of factors is not exhaustive. The
forward-looking statements contained in this news release are expressly
qualified in their entirety by this cautionary statement. The
Corporation does not undertake any obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise unless so required by applicable securities laws.
Further information concerning the risks and uncertainties associated
with these forward looking statements and the Corporation's business
may be found in our Annual Information Form for the year ended December
31, 2014, filed on SEDAR.

Management's Discussion and Analysis - Q3 2015

The following management's discussion and analysis ("MD&A") discusses
the consolidated financial condition and results of operations of Wajax
Corporation ("Wajax" or the "Corporation") for the quarter ended
September 30, 2015. This MD&A should be read in conjunction with the
information contained in the unaudited condensed consolidated financial
statements and accompanying notes for the quarter ended September 30,
2015, the annual audited consolidated financial statements and
accompanying notes for the year ended December 31, 2014 and the
associated MD&A. Information contained in this MD&A is based on
information available to management as of November 3, 2015.

Unless otherwise indicated, all financial information within this MD&A
is in millions of Canadian dollars, except ratio calculations, share,
share rights and per share data. Additional information, including
Wajax's Annual Report and Annual Information Form, are available on
SEDAR at www.sedar.com.

Responsibility of Management and the Board of Directors

Management is responsible for the information disclosed in this MD&A and
the unaudited condensed consolidated financial statements and
accompanying notes, and has in place appropriate information systems,
procedures and controls to ensure that information used internally by
management and disclosed externally is materially complete and
reliable. Wajax's board of directors has approved this MD&A and the
unaudited condensed consolidated financial statements and accompanying
notes. In addition, Wajax's audit committee, on behalf of the board of
directors, provides an oversight role with respect to all public
financial disclosures made by Wajax and has reviewed this MD&A and the
unaudited condensed consolidated financial statements and accompanying
notes.

Disclosure Controls and Procedures and Internal Control over Financial
Reporting

Wajax's management, under the supervision of its Chief Executive Officer
("CEO") and Chief Financial Officer ("CFO"), is responsible for
establishing and maintaining disclosure controls and procedures
("DC&P") and internal control over financial reporting ("ICFR").

As at September 30, 2015, Wajax's management, under the supervision of
its CEO and CFO, had designed DC&P to provide reasonable assurance that
information required to be disclosed by Wajax in annual filings,
interim filings or other reports filed or submitted under applicable
securities legislation is recorded, processed, summarized and reported
within the time periods specified in such securities legislation. DC&P
are designed to ensure that information required to be disclosed by
Wajax in annual filings, interim filings or other reports filed or
submitted under applicable securities legislation is accumulated and
communicated to Wajax's management, including its CEO and CFO, as
appropriate, to allow timely decisions regarding required disclosure.

As at September 30, 2015, Wajax's management, under the supervision of
its CEO and CFO, had designed internal control over financial reporting
("ICFR") to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with International Financial Reporting
Standards ("IFRS") as published by the International Accounting
Standards Board. In completing the design, management used the
criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission ("COSO") in its 2013 version of Internal Control -
Integrated Framework. With regard to general controls over information
technology, management also used the set of practices of Control
Objectives for Information and related Technology ("COBIT") created by
the IT Governance Institute.

There was no change in Wajax's ICFR that occurred during the three
months ended September 30, 2015 that has materially affected, or is
reasonably likely to materially affect, Wajax's ICFR.

Cautionary Statement Regarding Forward-Looking Information

This MD&A contains certain forward-looking statements and
forward-looking information, as defined in applicable securities laws
(collectively, "forward-looking statements"). These forward-looking
statements relate to future events or the Corporation's future
performance. All statements other than statements of historical fact
are forward-looking statements. Often, but not always, forward looking
statements can be identified by the use of words such as "plans",
"anticipates", "intends", "predicts", "expects", "is expected",
"scheduled", "believes", "estimates", "projects" or "forecasts", or
variations of, or the negatives of, such words and phrases or state
that certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved. Forward
looking statements involve known and unknown risks, uncertainties and
other factors beyond the Corporation's ability to predict or control
which may cause actual results, performance and achievements to differ
materially from those anticipated or implied in such forward looking
statements. There can be no assurance that any forward looking
statement will materialize. Accordingly, readers should not place
undue reliance on forward looking statements. The forward looking
statements in this MD&A are made as of the date of this MD&A, reflect
management's current beliefs and are based on information currently
available to management. Although management believes that the
expectations represented in such forward-looking statements are
reasonable, there is no assurance that such expectations will prove to
be correct. Specifically, this MD&A includes forward looking
statements regarding, among other things, our goal of becoming Canada's
leading industrial products and services provider; our continued
monitoring of costs and efforts to maintain disciplined control over
inventories and receivables; our cost reduction activities, including
our restructuring of the Power Systems segment and the expected savings
therefrom, as well as our review of additional cost reductions which
are expected to begin taking effect in 2016; our financing, working and
maintenance capital requirements, as well as our capital structure and
leverage ratio; our foreign exchange exposures, including the impact of
fluctuations in foreign currency values; the adequacy of our debt
capacity; our intention and ability to access debt and equity markets
should additional capital be required; our expectation that challenging
market conditions will continue to negatively affect our revenue; the
delay of significant working capital and debt reductions into 2016; our
continued focus on prudently managing our assets; our commitment to
achieving our five year compounded annual growth rate objective; our
confidence in our 4 Points of Growth strategy and our focus on its
execution; our ability to enhance earnings through further cost
reductions and improvements in organizational effectiveness; our
expectation that markets in central and eastern Canada continue to
offer the Corporation excellent growth opportunity; and our view that,
as our outlook period progresses, we are well positioned to be a
stronger growth company. These statements are based on a number of
assumptions which may prove to be incorrect, including, but not limited
to, assumptions regarding general business and economic conditions; the
supply and demand for, and the level and volatility of prices for, oil
and other commodities; financial market conditions, including interest
rates; our ability to execute our renewed long-term growth strategy,
including our ability to develop our core capabilities, execute on our
organic growth priorities, complete and effectively integrate
acquisitions and to successfully implement new information technology
platforms, systems and software; the future financial performance of
the Corporation; our costs; market competition; our ability to attract
and retain skilled staff; our ability to procure quality products and
inventory; and our ongoing relations with suppliers, employees and
customers. The foregoing list of assumptions is not exhaustive.
Factors that may cause actual results to vary materially include, but
are not limited to, a deterioration in general business and economic
conditions; volatility in the supply and demand for, and the level of
prices for, oil and other commodities; a continued or prolonged
decrease in the price of oil; fluctuations in financial market
conditions, including interest rates; the level of demand for, and
prices of, the products and services we offer; levels of customer
confidence and spending; market acceptance of the products we offer;
termination of distribution or original equipment manufacturer
agreements; unanticipated operational difficulties (including failure
of plant, equipment or processes to operate in accordance with
specifications or expectations, cost escalation, our inability to
reduce costs in response to slow-downs in market activity,
unavailability of quality products or inventory, supply disruptions,
job action and unanticipated events related to health, safety and
environmental matters); our ability to attract and retain skilled staff
and our ability to maintain our relationships with suppliers, employees
and customers. The foregoing list of factors is not exhaustive.
Further information concerning the risks and uncertainties associated
with these forward looking statements and the Corporation's business
may be found in this MD&A under the heading "Risk Management and
Uncertainties" and in our Annual Information Form for the year ended
December 31, 2014, filed on SEDAR. The forward-looking statements
contained in this MD&A are expressly qualified in their entirety by
this cautionary statement. The Corporation does not undertake any
obligation to publicly update such forward-looking statements to
reflect new information, subsequent events or otherwise unless so
required by applicable securities laws. Readers are further cautioned
that the preparation of financial statements in accordance with IFRS
requires management to make certain judgements and estimates that
affect the reported amounts of assets, liabilities, revenues and
expenses. These estimates may change, having either a negative or
positive effect on net earnings as further information becomes
available, and as the economic environment changes.

Wajax Corporation Overview

Wajax is a leading Canadian distributor engaged in the sale and service
support of mobile equipment, power systems and industrial components.
Reflecting a diversified exposure to the Canadian economy, Wajax has
three distinct product divisions which operate through a network of 124
branches across Canada.

The Corporation's goal is to be Canada's leading industrial products and
services provider, distinguished through: sales force excellence,
breadth and efficiency of repair and maintenance operations and an
ability to work closely with existing and new vendor partners to
constantly expand its product offering to customers.

Consolidated Results

Three months ended

Nine months ended

September 30

September 30

2015

2014

2015

2014

Revenue

$

290.9

$

359.5

$

948.9

$

1,065.2

Gross profit

$

60.6

$

72.3

$

194.0

$

215.8

Selling and administrative expenses

$

47.3

$

50.7

$

151.6

$

161.8

Restructuring costs

$

-

$

3.1

$

2.1

$

3.1

Earnings before finance costs and income taxes(1)

$

13.3

$

18.5

$

40.3

$

51.0

Finance costs

$

2.8

$

3.3

$

9.5

$

9.7

Earnings before income taxes(1)

$

10.5

$

15.2

$

30.9

$

41.2

Income tax expense

$

3.0

$

4.1

$

8.6

$

11.2

Net earnings

$

7.5

$

11.1

$

22.2

$

30.0

Basic earnings per share

$

0.38

$

0.66

$

1.23

$

1.79

Diluted earnings per share

$

0.37

$

0.65

$

1.21

$

1.76

(1)

These amounts do not have a standardized meaning prescribed by generally
accepted accounting principles ("GAAP"). See the Non-GAAP and
Additional GAAP Measures section.

Ongoing weakness in oil and other commodity prices in the quarter
continued to have a negative effect on Wajax customers in all segments
in the construction, mining, oil and gas, oil sands and on-highway
markets in western Canada.

The impact was most significant in the Equipment segment, which
experienced a 39% decline in equipment revenue due to lower demand and
competitive market pressures, and a 5% reduction in parts and service
revenues as oil sands operators and mining customers continued to idle
portions of their equipment fleets and defer maintenance. The Power
Systems segment experienced a decline in both off-highway and
on-highway equipment and parts and service volumes due to the lower oil
and gas activity in western Canada. In addition, the Industrial
Components segment's western Canada operation was negatively impacted
by the decline in oil and gas and oil sands activity.

Revenue
Revenue in the third quarter of 2015 of $290.9 million decreased 19%, or
$68.6 million, from $359.5 million in 2014. Equipment segment revenue
decreased 28%, or $50.0 million, primarily due to lower volumes in all
market sectors in western Canada. Power Systems segment revenue
decreased 16%, or $12.3 million, driven by a reduction in oil and gas
related revenues in western Canada. Industrial Components segment
revenue decreased 6%, or $6.6 million, as lower sales to oil and gas
and oil sands customers in western Canada was offset partially by
increased sales to forestry customers in eastern and central Canada.

For the nine months ended September 30, 2015, revenue of $948.9 million
decreased 11%, or $116.3 million, from $1,065.2 million in 2014.
Equipment segment revenue decreased 16%, or $86.1 million, as a result
of lower construction, oil sands and mining sector volumes in western
Canada, offset partially by higher forestry sector volumes. Power
Systems segment revenue decreased 10%, or $23.0 million, driven by a
reduction in oil and gas related revenues in western Canada and offset
by gains in central and eastern Canada. Industrial Components segment
revenue decreased 3%, or $9.1 million, as lower sales to oil and gas
and oil sands customers in western Canada were partially offset by
higher sales to forestry customers in all regions and mining customers
in eastern and central Canada.

Gross profit
Gross profit in the third quarter of 2015 compared to the same quarter
in the prior year decreased 16%, or $11.7 million, due to lower volumes
offset partially by higher gross profit margins. Gross profit margin
percentage of 20.8% increased from 20.1% in the prior year due to a
$2.8 million gain on the monetization of six Hitachi mining trucks in
the Equipment segment and a higher proportion of parts and service
volumes offset, in part, by lower parts and service gross profit
margins compared to last year. Excluding the $2.8 million gain on the
monetization of the six Hitachi mining trucks, the gross profit margin
percentage in the third quarter was 19.9%, reflecting lower operating
gross profit margins due primarily to competitive pressure.

Selling and administrative expenses
Selling and administrative expenses decreased 7%, or $3.4 million, in
the third quarter of 2015 compared to the same quarter last year, due
mainly to lower incentive accruals, sales related expenses and
workforce reductions. Selling and administrative expenses as a
percentage of revenue increased to 16.2% in 2015 from 14.1% in 2014.

For the nine months ended September 30, 2015, selling and administrative
expenses decreased 6%, or $10.2 million, compared to the same period
last year. This was due mainly to workforce reductions as well as
lower incentive accruals and sales related expenses. Selling and
administrative expenses as a percentage of revenue increased to 16.0%
in 2015 from 15.2% in 2014.

Finance costs
Quarterly finance costs of $2.8 million decreased $0.5 million compared
to 2014 due to lower funded net debt levels mainly as a result of the
$71.4 million of proceeds from the issuance of share capital in the
second quarter of 2015.

For the nine months ended September 30, 2015, finance costs of $9.5
million decreased $0.2 million compared to the same period in 2014.

Income tax expense
The Corporation's effective income tax rate for the quarter and nine
months ended September 30, 2015 of 28.5% and 28.0%, respectively,
increased from 27.1% in the previous year. The increases were a
function of an increase in the statutory income tax rate to 26.5% from
26.1% and the impact of expenses not deductible for tax purposes
representing a higher percentage of total income on lower earnings in
2015 compared to 2014.

Net earnings
Quarterly net earnings decreased $3.6 million to $7.5 million, or $0.38
per share, from $11.1 million, or $0.66 per share, in the same quarter
of 2014. The $3.6 million decrease in net earnings resulted primarily
from lower volumes, partially offset by reduced selling and
administrative expenses and finance costs compared to the same period
last year. The $0.28 decrease in basic earnings per share reflects the
decrease in net earnings, as described above, combined with the impact
of the equity offering completed in the second quarter of 2015, which
decreased basic earnings per share by $0.07.

For the nine months ended September 30, 2015, net earnings decreased
$7.8 million to $22.2 million, or $1.23 per share, from $30.0 million,
or $1.79 per share, in the same period in 2014. The decrease in net
earnings resulted primarily from lower volumes and restructuring costs,
partially offset by reduced selling and administrative expenses
compared to last year. The $0.56 decrease in basic earnings per share
reflects the decrease in net earnings, as described above, combined
with the impact of the equity offering completed in the second quarter
of 2015, which decreased basic earnings per share by $0.10.

Comprehensive income
Total comprehensive income of $7.8 million in the third quarter of 2015
included net earnings of $7.5 million and other comprehensive income of
$0.3 million. The other comprehensive income of $0.3 million includes
gains on derivative instruments designated as cash flow hedges
outstanding at the end of the quarter net of gains reclassified to cost
of inventory during the quarter.

For the nine months ended September 30, 2015, total comprehensive income
of $22.4 million included net earnings of $22.2 million and other
comprehensive income of $0.1 million. The other comprehensive income of
$0.1 million includes gains on derivative instruments designated as
cash flow hedges outstanding at the end of the quarter net of gains
reclassified to cost of inventory during the quarter.

Funded net debt (See the Non-GAAP and Additional GAAP Measures section)
Funded net debt of $167.5 million at September 30, 2015 decreased $0.2
million compared to $167.3 million at June 30, 2015. This was due
principally to cash generated from operating activities of $6.2
million, offset partially by dividends paid of $5.0 million and
investing activities of $0.8 million. Wajax's leverage ratio of 1.98
times at September 30, 2015 increased from the June 30, 2015 ratio of
1.82 times primarily as a result of a lower trailing 12-month Adjusted
EBITDA. See the Consolidated Financial Condition and the Liquidity and
Capital Resources sections.

Funded net debt of $167.5 million at September 30, 2015 decreased $33.5
million compared to $201.0 million at December 31, 2014. During the
period, proceeds from the issuance of share capital of $71.4 million
were offset somewhat by cash used in operating activities of $16.7
million, dividends paid of $16.5 million and investing activities of
$3.1 million.

Dividends
For the third quarter ended September 30, 2015, quarterly dividends
declared totaled $0.25 per share. For the third quarter ended
September 30, 2014, monthly dividends declared totaled $0.60 per share.

On November 3, 2015, Wajax announced a fourth quarter dividend of $0.25
per share payable on January 5, 2016 to shareholders of record on
December 15, 2015. See the Dividends section below.

Backlog (See the Non-GAAP and Additional GAAP Measures section)
Consolidated backlog at September 30, 2015 of $156.1 million decreased
$15.1 million, or 9%, from $171.2 million at June 30, 2015 due to
decreases in all segments. Consolidated backlog decreased $51.9
million, or 25%, compared to September 30, 2014 driven by decreases in
the Equipment and Power Systems segments. See the Results of
Operations section below for further backlog detail by segment.

Results of Operations

Equipment

Three months ended

Nine months ended

September 30

September 30

2015

2014

2015

2014

Equipment(1)

$

73.5

$

120.8

$

268.3

$

331.3

Parts and service

$

55.8

$

58.5

$

173.6

$

196.7

Segment revenue

$

129.3

$

179.3

$

441.9

$

528.0

Segment earnings(2)

$

10.5

$

12.2

$

29.0

$

36.5

Segment earnings margin

8.1%

6.8%

6.6%

6.9%

(1)

Includes rental and other revenue.

(2)

Earnings before finance costs and income taxes.

Revenue in the third quarter of 2015 decreased 28%, or $50.0 million, to
$129.3 million from $179.3 million in the third quarter of 2014.
Segment earnings for the quarter decreased $1.7 million, to $10.5
million, compared to the third quarter of 2014. The following factors
contributed to the Equipment segment's third quarter results:

Equipment revenue for the third quarter decreased $47.3 million compared
to the same quarter last year with specific quarter-over-quarter
variances as follows:

Construction equipment revenue decreased $18.3 million, mainly as a
result of decreases in Hitachi excavator and Bell articulated dump
truck sales in western Canada due to lower market demand and
competitive market pressures.

Mining equipment sales decreased $12.7 million as a result of higher
dollar value Hitachi mining equipment deliveries in the prior year not
repeated in the current year.

Forestry equipment revenue decreased $8.0 million due to an industry
slowdown caused by fires in British Columbia, a reduction in product
availability and an increase in the number of customers renting
equipment with a rental purchase option.

Crane and utility equipment revenue decreased $6.6 million, mainly as a
result of lower crane sales in western Canada and lower sales to
utility customers in central and eastern Canada.

Parts and service volumes for the third quarter decreased $2.7 million
compared to the same quarter last year. The decrease was primarily
attributable to lower mining sector volumes in western Canada,
including the oil sands, as customers continued to idle portions of
their equipment fleet and defer maintenance due to weak oil and
commodity prices.

The segment earnings decrease of $1.7 million in the third quarter
compared to the same quarter last year was mainly attributable to
western Canada operations. Overall, the impact of the decline in
volumes was partially offset by higher gross profit margins and a $1.9
million reduction in selling and administrative expenses compared to
last year. Gross profit margins increased due to higher equipment
margins resulting from a $2.8 million gain on the monetization of the
six Hitachi mining trucks and the positive impact of a higher
proportion of parts and service volumes compared to last year. Selling
and administrative expenses decreased $1.9 million, attributable to
reductions in the workforce, lower annual incentive accruals and lower
sales related expenses.

Backlog of $87.2 million at September 30, 2015 decreased $4.3 million
compared to June 30, 2015 due to decreases in crane and utility
orders. Backlog decreased $26.9 million compared to September 30, 2014
due mainly to decreases in crane and utility and material handling
equipment orders.

At the end of the third quarter, headcount in the Equipment segment's
western Canada operation had been reduced by approximately 15% in
response to market conditions. Headcounts in other regions are
generally unchanged due to the relatively stronger market conditions in
central and eastern Canada.

The segment will continue to monitor costs and maintain disciplined
control over inventories and receivables due to market conditions in
western Canada.

Power Systems

Three months ended

Nine months ended

September 30

September 30

2015

2014

2015

2014

Equipment(1)

$

20.7

$

26.8

$

67.4

$

80.3

Parts and service

$

45.2

$

51.4

$

146.9

$

157.0

Segment revenue

$

65.9

$

78.2

$

214.3

$

237.3

Segment earnings before restructuring costs(2)

$

1.1

$

5.4

$

7.7

$

13.1

Restructuring costs

$

-

$

-

$

2.1

$

-

Segment earnings(3)

$

1.1

$

5.4

$

5.6

$

13.1

Segment earnings margin before restructuring costs(2)

1.7%

6.9%

3.6%

5.5%

Restructuring costs

-

-

(1.0%)

-

Segment earnings margin

1.7%

6.9%

2.6%

5.5%

(1)

Includes rental and other revenue.

(2)

Earnings before restructuring costs, finance costs and income taxes. See
the Non-GAAP and Additional GAAP Measures section.

(3)

Earnings before finance costs and income taxes.

Revenue in the third quarter of 2015 decreased $12.3 million, or 16%, to
$65.9 million compared to $78.2 million in the same quarter of 2014.
Segment earnings decreased $4.3 million to $1.1 million in the third
quarter compared to the same quarter in the previous year. The
following factors impacted quarter-over-quarter revenue and earnings:

Equipment revenue decreased $6.1 million due to declines in off-highway
equipment volumes to oil and gas customers in western Canada and lower
power generation volumes.

Parts and service volumes decreased $6.2 million, attributable to lower
sales to on-highway and off-highway customers in western Canada
resulting from the decline in oil and gas activity. These decreases
were partially offset by higher sales to off-highway and power
generation customers in eastern and central Canada.

Segment earnings decreased $4.3 million due to reduced sales volumes and
lower parts and service gross profit margins, offset partially by a
$0.1 million decrease in selling and administrative expenses.

Backlog of $25.0 million as of September 30, 2015 decreased $8.5 million
compared to June 30, 2015, due mainly to lower off-highway and power
generation orders in western Canada and lower power generation orders
in eastern Canada. Backlog decreased $22.3 million compared to
September 30, 2014, primarily due to lower power generation backlog in
western and central Canada and lower off-highway backlog in western and
eastern Canada.

In the third quarter of 2015, the Power Systems segment continued
implementation of restructuring activities that began in the second
quarter, to realign branch support activities, including the
centralization of supply chain management and certain other
administrative support functions. The restructuring, combined with
other cost reductions realized to date and cost reductions related to
reduced economic activity in western Canada, are anticipated to result
in annualized savings of approximately $7.4 million of which
approximately $4.2 million is expected to be achieved in 2015.

At the end of the third quarter, headcount in the Power System segment's
western Canada operation had been reduced by approximately 15% in
response to market conditions. Headcounts in other regions are
generally unchanged due to the relatively stronger market conditions in
central and eastern Canada.

Industrial Components

Three months ended

Nine months ended

September 30

September 30

2015

2014

2015

2014

Segment revenue

$

96.6

$

103.2

$

295.3

$

304.4

Segment earnings before restructuring costs(1)

$

4.7

$

6.6

$

13.5

$

12.4

Restructuring costs

$

-

$

(3.1)

$

-

$

(3.1)

Segment earnings(2)

$

4.7

$

3.6

$

13.5

$

9.4

Segment earnings margin before restructuring costs(1)

4.8%

6.4%

4.6%

4.1%

Restructuring costs

-

(2.9%)

-

(1.0%)

Segment earnings margin

4.8%

3.5%

4.6%

3.1%

(1)

Earnings before restructuring costs, finance costs and income taxes.
See the Non-GAAP and Additional GAAP Measures section.

(2)

Earnings before finance costs and income taxes.

Revenue of $96.6 million in the third quarter of 2015 decreased $6.6
million, or 6%, from $103.2 million in the third quarter of 2014.
Segment earnings increased $1.1 million to $4.7 million in the third
quarter of 2015 compared to the same quarter in the previous year.
Segment earnings before restructuring costs decreased $1.9 million to
$4.7 million in the quarter compared to last year. See the Non-GAAP and
Additional GAAP Measures section. The following factors contributed to
the segment's third quarter results:

Bearings and power transmission parts sales remained flat compared to
the same quarter last year. Increased volumes to forestry sector
customers in eastern Canada and oil sands customers in western Canada
were offset by reductions to industrial, mining, metal processing and
oil and gas customers.

Fluid power and process equipment products and service revenue in the
third quarter of 2015 decreased $6.6 million, or 14%, compared to the
same quarter last year. The decrease was due primarily to reduced
sales to oil and gas and oil sands customers in western Canada
partially offset by increased volumes to other customers in central
Canada.

Segment earnings in the third quarter of 2015 increased $1.1 million
compared to the same quarter last year as the negative impact of lower
volumes was more than offset by $3.1 million of restructuring costs in
2014 not repeated in 2015 as well as the positive impact of a $1.4
million decrease in selling and administrative expenses. The decrease
in selling and administrative expenses was mainly attributable to lower
incentive accruals and sales related expenses. Segment earnings before
restructuring costs decreased $1.9 million. See the Non-GAAP and
Additional GAAP Measures section.

Backlog of $43.9 million as of September 30, 2015 decreased $2.3 million
compared to June 30, 2015, due mainly to lower orders for process
equipment in western Canada. Backlog decreased $2.7 million compared
to September 30, 2014, primarily due to lower orders for fluid power
and process equipment in western Canada, offset partially by higher
orders in eastern Canada.

Headcount in the Industrial Components segment is generally unchanged
from last year as the prior year restructuring activity had previously
reduced overall headcount.

Selected Quarterly Information

The following table summarizes unaudited quarterly consolidated
financial data for the eight most recently completed quarters. This
quarterly information is unaudited but has been prepared on the same
basis as the 2014 annual audited consolidated financial statements.

2015

2014

2013

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Revenue

$

290.9

$

340.7

$

317.2

$

386.1

$

359.5

$

374.4

$

331.4

$

391.7

Net earnings

$

7.5

$

9.0

$

5.7

$

11.2

$

11.1

$

12.3

$

6.7

$

12.2

Net earnings per share

- Basic

$

0.38

$

0.52

$

0.34

$

0.67

$

0.66

$

0.73

$

0.40

$

0.73

- Diluted

$

0.37

$

0.51

$

0.34

$

0.66

$

0.65

$

0.72

$

0.39

$

0.72

Although Wajax experienced weaker first quarter results in 2015 and 2014
due to various factors including reduced activity in oil and gas and
mining markets, quarterly fluctuations in revenue and net earnings are
difficult to predict. A normally weaker first quarter for the
Equipment segment can be offset by seasonally stronger activity in the
oil and gas sector, primarily affecting the Power Systems and
Industrial Components segments. As well, large deliveries of mining
trucks and shovels and power generation packages can shift the revenue
and net earnings throughout the year.

A discussion of Wajax's previous quarterly results can be found in
Wajax's quarterly MD&A available on SEDAR at www.sedar.com.

Consolidated Financial Condition

Capital Structure and Key Financial Condition Measures

September 302015

June 30
2015

December 31
2014

Shareholders' equity

$

325.7

$

322.7

$

248.5

Funded net debt(1)

167.5

167.3

201.0

Total capital

$

493.3

$

490.1

$

449.5

Adjusted EBITDA(1)

$

84.5

$

92.1

$

95.0

Funded net debt to total capital(1)

34.0%

34.1%

44.7%

Leverage ratio(1)

1.98

1.82

2.12

(1)

See the Non-GAAP and Additional GAAP Measures section.

The Corporation's objective is to maintain a leverage ratio between 1.5
times and 2.0 times. However, there may be instances where the
Corporation is willing to maintain a leverage ratio outside this range
to either support key growth initiatives or fluctuations in working
capital levels during changes in economic cycles. See the Funded Net
Debt section below.

Shareholders' Equity

The Corporation's shareholders' equity at September 30, 2015 of $325.7
million increased $3.0 million from June 30, 2015, as earnings exceeded
dividends declared during the quarter. For the nine months ending
September 30, 2015 the Corporation's shareholders' equity increased
$77.2 million, due principally from the net proceeds from the issuance
of share capital of $71.4 million and earnings that exceeded dividends
declared during the period. The Corporation's share capital, included
in shareholders' equity on the balance sheet, consists of:

Issued and fully paid common shares as at September 30, 2015

Number

Amount

Balance at the beginning of the quarter

19,975,883

$

179.7

Shares issued

6,677

0.1

Balance at the end of the quarter

19,982,560

$

179.8

At the date of this MD&A, the Corporation had 19,982,560 common shares
outstanding.

At September 30, 2015, Wajax had four share-based compensation plans;
the Wajax Share Ownership Plan ("SOP"), the Directors' Deferred Share
Unit Plan ("DDSUP"), the Mid-Term Incentive Plan for Senior Executives
("MTIP") and the Deferred Share Unit Plan ("DSUP"). In the first
quarter of 2014, all of the outstanding Deferred Share Program ("DSP")
rights were settled. SOP, DSP and DDSUP rights are issued to the
participants and are settled by issuing Wajax Corporation shares on a
one-for-one basis. As of September 30, 2015, there were 314,951 (2014 -
277,052) SOP and DDSUP rights outstanding. The cash-settled MTIP and
DSUP consist of annual grants that vest over three years and are
subject to time and performance vesting criteria. A portion of the
MTIP and the full amount of the DSUP grants are determined by the price
of the Corporation's shares. Compensation expense for the SOP, DSP and
DDSUP is determined based upon the fair value of the rights at the date
of grant and charged to earnings on a straight line basis over the
vesting period, with an offsetting adjustment to contributed surplus.
Compensation expense for the DSUP and the share-based portion of the
MTIP varies with the price of the Corporation's shares and is
recognized over the vesting period. Wajax recorded compensation
expense of $0.3 million for the quarter (2014 - $0.4 million) and $2.0
million for the nine months ended (2014 - $1.1 million) in respect of
these plans.

Funded net debt of $167.5 million at September 30, 2015 increased $0.2
million compared to June 30, 2015, due principally to cash generated
from operating activities of $6.2 million offset by dividends paid of
$5.0 million, property, plant and equipment additions of $0.9 million
and finance lease payments of $0.9 million. The cash generated from
operating activities of $6.2 million was net of increases in non-cash
working capital of $4.4 million, rental equipment additions of $4.8
million, finance costs paid of $0.6 million and income taxes paid of
$3.1 million.

Funded net debt of $167.5 million at September 30, 2015 decreased $33.5
million compared to December 31, 2014. During the period, net cash
proceeds from the issuance of share capital of $71.4 million were
offset somewhat by cash used in operating activities of $16.7 million,
dividends paid of $16.5 million and finance lease payments of $2.9
million. The cash used in operating activities of $16.7 million
included increases in non-cash working capital of $41.7 million, rental
equipment additions of $18.5 million, finance costs paid of $6.9
million and income taxes paid of $8.4 million.

The Corporation's ratio of funded net debt to capital decreased slightly
to 34.0% at September 30, 2015 from 34.1% at June 30, 2015.

The Corporation's leverage ratio of 1.98 times at September 30, 2015
increased from the June 30, 2015 ratio of 1.82 times, due to the lower
trailing 12-month Adjusted EBITDA.

See the Liquidity and Capital Resources section.

Financial Instruments

Wajax uses derivative financial instruments in the management of its
foreign currency and interest rate exposures. Wajax's policy restricts
the use of derivative financial instruments for trading or speculative
purposes.

Wajax enters into short-term currency forward contracts to hedge the
exchange risk associated with the cost of certain inbound inventory and
certain foreign currency-denominated sales to customers along with the
associated receivables as part of its normal course of business. As at
September 30, 2015, Wajax had the following contracts outstanding:

to buy U.S. $35.4 million (December 31, 2014 - to buy U.S. $41.8
million, September 30, 2014 - to buy U.S. $38.2 million), and

The U.S. dollar contracts expire between October 2015 and November 2016,
with a weighted average U.S./Canadian dollar rate of 1.2976.

Wajax measures derivative instruments not accounted for as hedging items
at fair value with subsequent changes in fair value being recorded in
earnings. Derivatives designated as effective hedges are measured at
fair value with subsequent changes in fair value being recorded in
other comprehensive income until the related hedged item is recorded
and affects income or inventory. The fair value of derivative
instruments is estimated based upon market conditions using appropriate
valuation models. The carrying values reported in the balance sheet
for financial instruments are not significantly different from their
fair values.

A change in foreign currency, relative to the Canadian dollar, on
transactions with customers that include unhedged foreign currency
exposures is not expected to have a material impact on the
Corporation's results of operations or financial condition.

Wajax will periodically institute price increases to offset the negative
impact of foreign exchange rate increases and volatility on imported
goods to ensure margins are not eroded. However, a sudden strengthening
of the U.S. dollar relative to the Canadian dollar can have a negative
impact mainly on parts margins in the short term prior to price
increases taking effect.

Wajax is exposed to the risk of non-performance by counterparties to
short-term currency forward contracts. These counterparties are large
financial institutions that maintain high short-term and long-term
credit ratings. To date, no such counterparty has failed to meet its
financial obligations to Wajax. Management does not believe there is a
significant risk of non-performance by these counterparties and will
continue to monitor the credit risk of these counterparties.

Contractual Obligations

There have been no material changes to the Corporation's contractual
obligations since December 31, 2014. See the Liquidity and Capital
Resources section.

Off Balance Sheet Financing

Off balance sheet financing arrangements include operating lease
contracts for facilities with various landlords and other equipment
related mainly to office equipment. There have been no material
changes to the Corporation's total obligations for all operating leases
since December 31, 2014. See the Contractual Obligations section
above.

Although Wajax's consolidated contractual annual lease commitments
decline year-by-year, it is anticipated that existing leases will
either be renewed or replaced, resulting in lease commitments being
sustained at current levels. In the alternative, Wajax may incur
capital expenditures to acquire equivalent capacity.

The Equipment segment had $74.6 million (2014 - $79.1 million) of
consigned inventory on-hand from a major manufacturer at September 30,
2015. In the normal course of business, Wajax receives inventory on
consignment from this manufacturer which is generally sold to customers
or purchased by Wajax. This consigned inventory is not included in
Wajax's inventory as the manufacturer retains title to the goods. In
the event the inventory consignment program was terminated, Wajax would
utilize interest free financing, if any, made available by the
manufacturer and/or utilize capacity under its credit facilities.

Although management currently believes Wajax has adequate debt capacity,
Wajax would have to access the equity or debt markets, or reduce
dividends to accommodate any shortfalls in Wajax's credit facilities.
See the Liquidity and Capital Resources section.

Liquidity and Capital Resources

The Corporation's liquidity is maintained through various sources,
including bank and non-bank credit facilities, senior notes and cash
generated from operations.

Bank and Non-bank Credit Facilities and Senior Notes

At September 30, 2015, Wajax had borrowed $34.0 million and issued $5.2
million of letters of credit for a total utilization of $39.2 million
of its $250 million bank credit facility. In addition, Wajax had $125
million of senior notes outstanding bearing an interest rate of 6.125%
per annum, payable semi-annually, maturing on October 23, 2020.
Borrowing capacity under the bank credit facility is dependent on the
level of inventories on-hand and outstanding trade accounts
receivables. At September 30, 2015, borrowing capacity under the bank
credit facility was equal to $250 million.

The bank credit facility contains customary restrictive covenants
including limitations on the payment of cash dividends and the
maintenance of certain financial ratios all of which were met as at
September 30, 2015. In particular, the Corporation is restricted from
declaring dividends in the event the Corporation's leverage ratio, as
defined in the bank credit facility agreement, exceeds 3.25 times. The
senior notes are unsecured and contain customary incurrence based
covenants that, although different from those under the bank credit
facility described above, are not expected to be any more restrictive
than under the bank credit facility. All covenants were met as at
September 30, 2015.

Under the terms of the bank credit facility, Wajax is permitted to have
additional interest bearing debt of $15 million. As such, Wajax has up
to $15 million of demand inventory equipment financing capacity with
three non-bank lenders. At September 30, 2015, Wajax had no
utilization of the interest bearing equipment financing facilities.

As of November 3, 2015, Wajax's $250 million bank credit facility, of
which $210.8 million was unutilized at the end of the third quarter,
along with the additional $15 million of capacity permitted under the
bank credit facility, should be sufficient to meet Wajax's short-term
normal course working capital and maintenance capital requirements and
certain strategic investments. However, Wajax may be required to access
the equity or debt markets to fund significant acquisitions.

In addition, the Corporation's tolerance to interest rate risk
decreases/increases as the Corporation's leverage ratio
increases/decreases. At September 30, 2015, $125 million of the
Corporation's funded net debt, or 75%, was at a fixed interest rate
which is within the Corporation's interest rate risk policy.

Cash Flow

The following table highlights the major components of cash flow as
reflected in the Consolidated Statements of Cash Flows for the three
and nine months ended September 30, 2015 and September 30, 2014.

Three months ended

Nine months ended

September 30

September 30

($millions)

2015

2014

Change

2015

2014

Change

Net earnings

$

7.5

$

11.1

$

(3.6)

$

22.2

$

30.0

$

(7.8)

Items not affecting cash flow

12.0

12.5

(0.5)

37.3

38.3

(1.0)

Net change in non-cash operating working capital

(4.4)

(10.9)

6.5

(41.7)

(21.1)

(20.6)

Finance costs paid

(0.6)

(2.1)

1.5

(6.9)

(7.3)

0.4

Income taxes paid

(3.1)

(3.2)

0.1

(8.4)

(10.8)

2.4

Rental equipment additions

(4.8)

(2.1)

(2.7)

(18.5)

(14.5)

(4.0)

Other non-current liabilities

(0.4)

0.5

(0.9)

(0.7)

1.5

(2.2)

Cash generated from (used in) operating activities

$

6.2

$

5.8

$

0.4

$

(16.7)

$

16.1

$

(32.8)

Cash used in investing activities

$

(0.8)

$

(1.7)

$

0.9

$

(3.1)

$

(3.8)

$

0.7

Cash (used in) generated from financing activities

$

(9.9)

$

(4.6)

$

(5.3)

$

26.0

$

(21.5)

$

47.5

Cash Generated From (Used In) Operating Activities

Cash flows generated from operating activities amounted to $6.2 million
in the third quarter of 2015, compared to $5.8 million in the same
quarter of the previous year. The increase of $0.4 million was mainly
attributable to a decrease in cash used for non-cash working capital of
$6.5 million, offset by lower earnings of $3.6 million and higher
rental equipment additions of $2.7 million.

Rental equipment additions in the third quarter of 2015 of $4.8 million
(2014 - $2.1 million) related primarily to lift trucks in the Equipment
segment.

For the nine months ended September 30, 2015, cash flows used in
operating activities amounted to $16.7 million, compared to cash
generated from operating activities of $16.1 million for the same
period in the previous year. The $32.8 million decrease in cash flows
generated from operating activities was mainly attributable to an
increased use of working capital of $20.6 million in 2015, lower net
earnings of $7.8 million and higher rental equipment additions of $4.0
million.

For the nine months ended September 30, 2015, rental equipment additions
of $18.5 million (2014 - $14.5 million) related to lift trucks in the
Equipment segment and power generation equipment in the Power Systems
segment.

Significant components of non-cash operating working capital, along with
changes for the three and nine months ended September 30, 2015 and
September 30, 2014 include the following:

($millions)

Three months ended

Nine months ended

Changes in Non-cash Operating Working Capital(1)

September 302015

September30
2014

September 302015

September30
2014

Trade and other receivables

$

(5.6)

$

(13.8)

$

7.0

$

(14.1)

Contracts in progress

4.1

6.1

(0.4)

(5.4)

Inventories

10.0

(18.8)

7.8

(30.9)

Prepaid expenses

2.5

(1.4)

1.4

(2.2)

Accounts payable and accrued liabilities

(15.3)

16.8

(56.8)

33.5

Provisions

(0.1)

0.2

(0.7)

(2.0)

Total Changes in Non-cash Operating Working Capital

$

(4.4)

$

(10.9)

$

(41.7)

$

(21.1)

(1)

Increase (decrease) in cash flow

Significant components of the changes in non-cash operating working
capital for the quarter ended September 30, 2015 compared to the
quarter ended September 30, 2014 are as follows:

Trade and other receivables increased $5.6 million in 2015 compared to
an increase of $13.8 million in 2014. The increase in 2015 resulted
primarily from outstanding billings related to power generation
projects in the Power Systems segment. The increase in 2014 was mainly
attributable to billings related to power generation projects in the
Power Systems segment and higher sales activity in the Industrial
Components segment.

Contracts in progress decreased $4.1 million in 2015 compared to a
decrease of $6.1 million in 2014. The decreases in both years were due
to a reduction in contract revenue recognized in advance of billings
related to power generation projects in the Power Systems segment.

Inventories decreased $10.0 million in 2015 compared to an increase of
$18.8 million in 2014. The decrease in 2015 was due mainly to lower
mining equipment inventory offset partially by higher material handling
and forestry equipment inventory in the Equipment segment. The increase
in 2014 was primarily related to higher mining and material handling
inventory in the Equipment segment.

Accounts payable and accrued liabilities decreased $15.3 million in 2015
compared to an increase of $16.8 million in 2014. The decrease in 2015
resulted from lower trade payables in all segments, due in part to the
payment of equipment inventory in the Equipment segment and decreased
purchasing activity, offset partially by higher accrued liabilities.
The increase in 2014 resulted primarily from higher inventory trade
payables in the Equipment segment.

Significant components of the changes in non-cash operating working
capital for the nine months ended September 30, 2015 compared to the
nine months ended September 30, 2014 are as follows:

Trade and other receivables decreased $7.0 million in 2015 compared to
an increase of $14.1 million in 2014. The decrease in 2015 was mainly
attributable to lower sales activity in the Equipment and Industrial
Components segments. The increase in 2014 resulted primarily from
higher sales activity in the Equipment and Power Systems segments.

Contracts in progress increased $0.4 million in 2015 compared to an
increase of $5.4 million in 2014. The increases in both years reflect
higher contract revenue recognized in advance of billings related to
power generation projects in the Power Systems segment.

Inventories decreased $7.8 million in 2015 compared to an increase of
$30.9 million in 2014. The decrease in 2015 was due mainly to lower
mining equipment inventory offset partially by higher construction and
forestry equipment inventory in the Equipment segment and higher
inventory in the Industrial Components and Power Systems segments. The
increase in 2014 was primarily related to higher construction, material
handling and forestry inventory in the Equipment segment.

Accounts payable and accrued liabilities decreased $56.8 million in 2015
compared to an increase of $33.5 million in 2014. The decrease in 2015
resulted from lower trade payables in all segments, due in part to the
payment of equipment inventory in the Equipment segment on supplier
financing and decreased purchasing activity. The increase in 2014
resulted primarily from higher trade payables in the Equipment segment
reduced somewhat by lower trade payables in the Power Systems and
Industrial Components segments.

Investing Activities
During the third quarter of 2015, Wajax invested $0.8 million in
property, plant and equipment additions, net of disposals, compared to
$1.7 million in the third quarter of 2014.

For the nine months ended September 30, 2015, Wajax invested $3.0
million in property, plant and equipment additions, net of disposals,
compared to $3.8 million in the nine months ended September 30, 2014.

Financing Activities
The Corporation used $9.9 million of cash from financing activities in
the third quarter of 2015 compared to $4.6 million used in the same
quarter of 2014. Financing activities in the quarter included a net
bank credit facility repayment of $4.0 million (2014 - drawdown of $7.0
million), dividends paid to shareholders totaling $5.0 million (2014 -
$10.1 million) and finance lease payments of $0.9 million (2014 - $0.8
million).

For the nine months ended September 30, 2015, the Corporation generated
$26.0 million of cash from financing activities compared to a use of
cash of $21.5 million from financing activities in the same period of
2014. Financing activities for the nine months ended September 30, 2015
included proceeds from the issuance of share capital of $71.4 million
(2014 - nil), offset by a net bank credit facility repayment of $26.0
million (2014 - drawdown of $12.0 million), dividends paid to
shareholders totaling $16.5 million (2014 - $30.2 million), and finance
lease payments of $2.9 million (2014 - $2.7 million).

Dividends

Dividends to shareholders were declared as follows:

Record Date

Payment Date

Per Share

Amount

September 15, 2015

October 2, 2015

$

0.25

$

5.0

Three months ended September 30, 2015

$

0.25

$

5.0

On November 3, 2015, Wajax announced a third quarter dividend of $0.25
per share ($1.00 per share annualized) payable on January 5, 2016 to
shareholders of record on December 15, 2015.

Non-GAAP and Additional GAAP Measures

The MD&A contains certain non-GAAP and additional GAAP measures that do
not have a standardized meaning prescribed by GAAP. Therefore, these
financial measures may not be comparable to similar measures presented
by other issuers. Investors are cautioned that these measures should
not be construed as an alternative to net earnings or to cash flow from
operating, investing, and financing activities determined in accordance
with GAAP as indicators of the Corporation's performance. The
Corporation's management believes that:

(i)

these measures are commonly reported and widely used by investors and
management,

(ii)

the non-GAAP measures are commonly used as an indicator of a company's
cash operating performance, profitability and ability to raise and
service debt, in particular "Adjusted EBITDA" used in calculating the
Leverage Ratio excludes restructuring costs which is consistent with
the leverage ratio calculations under the Corporation's bank credit and
senior note agreements, and

(iii)

the additional GAAP measures are commonly used to assess a company's
earnings performance excluding its capital, tax structures and
restructuring costs

The leverage ratio is defined as funded net debt at the end of a
particular quarter
divided by trailing 12-month Adjusted EBITDA. The Corporation's
objective is to
maintain this ratio between 1.5 times and 2.0 times.

Funded net debt to total capital

Defined as funded net debt divided by total capital. Total capital is
the funded
net debt plus shareholder's equity.

Backlog

Backlog includes the total sales value of customer purchase commitments
for
future delivery or commissioning of equipment, parts and related
services.

Additional GAAP measures are identified and defined below:

Earnings before finance costs and income taxes (EBIT)

Earnings before finance costs and income taxes, as presented on the
Consolidated Statements of Earnings.

Earnings before income taxes (EBT)

Earnings before income taxes, as presented on the Consolidated
Statements of Earnings.

Segment earnings before restructuring costs

Segment earnings before restructuring costs, finance costs and income
taxes.

Reconciliation of the Corporation's net earnings to EBT, EBIT, EBITDA
and Adjusted EBITDA is as follows:

For the twelvemonths endedSeptember 30

For the twelvemonths endedJune 30

For the twelvemonths endedDecember 31

2015

2015

2014

Net earnings

$

33.4

$

37.0

$

41.2

Income tax expense

12.8

13.9

15.3

EBT

46.2

50.9

56.5

Finance costs

12.7

13.2

13.0

EBIT

58.9

64.1

69.5

Depreciation and amortization

23.8

23.1

22.5

EBITDA

82.7

87.2

92.0

Restructuring costs(1)

1.8

4.9

2.8

Adjusted EBITDA

$

84.5

$

92.1

$

95.0

(1)

For the twelve months ended September 30, 2015 - Includes the $2.1
million Power Systems segment restructuring provision recorded in the
second quarter of 2015 and the $0.3 million Industrial Components
segment restructuring recovery recorded in 2014. For the twelve months
ended June 30, 2015 - Includes the $2.1 million Power Systems segment
restructuring provision recorded in the second quarter of 2015 and the
$2.8 million Industrial Components segment restructuring provision
recorded in 2014. For the twelve months ended December 31, 2015 -
Includes the $2.8 million Industrial Components segment restructuring
provision recorded in 2014.

Calculation of the Corporation's funded net debt and leverage ratio is
as follows:

The preparation of the consolidated financial statements in conformity
with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, revenue and expenses. Actual
results could differ from those judgements, estimates and assumptions.
The Corporation bases its estimates on historical experience and
various other assumptions that are believed to be reasonable in the
circumstances.

The areas where significant judgements and assumptions are used to
determine the amounts recognized in the financial statements include
the allowance for doubtful accounts, inventory obsolescence and
goodwill and intangible assets. In preparing the financial statements
for the quarter ended September 30, 2015, the significant judgements
made by management in applying the Corporation's accounting policies
and the key sources of estimation uncertainty are the same as those
applied in the recently reported audited consolidated financial
statements for the year ended December 31, 2014 which can be found on
SEDAR at www.sedar.com.

Changes in Accounting Policies

No new standards have been adopted in the current period.

New standards and interpretations not yet adopted

The new standards or amendments to existing standards that may be
significant to the Corporation set out below are not yet effective for
the year ended December 31, 2015 and have not been applied in preparing
these consolidated financial statements.

On January 1, 2016, the Corporation will be required to adopt the
amendments to IAS 1 Presentation of Financial Statements, which will
facilitate improved financial statement disclosures. The Corporation
does not expect IAS 1 to have a material impact on its consolidated
financial statements.

On January 1, 2018, the Corporation will be required to adopt IFRS 9
Financial Instruments, which is the IASB's project to replace IAS 39
Financial Instruments: Recognition and Measurement. The new standard
replaces the current multiple classification and measurement models for
financial assets and liabilities with a single model that has only two
classification categories: amortized cost and fair value. Additional
changes to the new standard will align hedge accounting more closely
with risk management. The Corporation is currently assessing the impact
of this standard on its consolidated financial statements.

On January 1, 2018, the Corporation will be required to adopt IFRS 15
Revenue from Contracts with Customers. The standard contains a single
model that applies to contracts with customers and two approaches to
recognizing revenue: at a point in time or over time. The model
features a contract-based five-step analysis of transactions to
determine whether, how much and when revenue is recognized. New
estimates and judgemental thresholds have been introduced, which may
affect the amount and/or timing of revenue recognized. The Corporation
is currently assessing the impact of this standard on its consolidated
financial statements.

Risk Management and Uncertainties

As with most businesses, Wajax is subject to a number of marketplace and
industry related risks and uncertainties which could have a material
impact on operating results and Wajax's ability to pay cash dividends
to shareholders. Wajax attempts to minimize many of these risks
through diversification of core businesses and through the geographic
diversity of its operations. In addition, Wajax has adopted an annual
enterprise risk management assessment which is prepared by the
Corporation's senior management and overseen by the board of directors
and committees of the board. The enterprise risk management framework
sets out principles and tools for identifying, evaluating, prioritizing
and managing risk effectively and consistently across Wajax. There are
however, a number of risks that deserve particular comment which are
discussed in detail in the MD&A for the year ended December 31, 2014
which can be found on SEDAR at www.sedar.com. There have been no
material changes to the business of Wajax that require an update to the
discussion of the applicable risks discussed in the MD&A for the year
ended December 31, 2014.

Strategic Direction and Outlook

Third quarter results were below management's expectations. The
Corporation's western Canada businesses experienced a further
deterioration in revenues and earnings as increasingly difficult
conditions in the energy sector had a negative effect on customers in
this and related markets. While all three segments were impacted by
these difficult conditions, the effect continued to be most significant
in the Equipment and Power Systems segments. Sales programs in other
regions, intended to partially offset the effect of the west, did not
deliver the expected results due to market and competitive factors. The
Industrial Components segment recorded an increase in segment earnings
after accounting for $3.1 million of restructuring costs recorded last
year. Excluding these restructuring costs, related reductions in the
segment's selling and administrative cost base and volume gains in a
variety of sectors mitigated some of the negative effects of the slow
western Canada market.

Reductions in consolidated selling and administrative costs of $3.4
million in the quarter and volume related service personnel staffing
adjustments partially mitigated the earnings impact of lower third
quarter volumes. The 2014 restructuring efforts in the Industrial
Components segment continue to result in a significantly lower cost
base, while at the same time improving sales effectiveness. In the
Equipment and Power Systems segments, the workforce in western Canada
was reduced by approximately 15% in response to soft market conditions.
In the Power Systems segment, the plan relating to the $2.1 million
second quarter restructuring provision, combined with other cost
reduction activities completed to date, is expected to result in
annualized savings of $7.4 million. Given management's expectation
that challenging market conditions will continue to negatively affect
revenue, management is in the process of reviewing additional areas of
cost reduction, which are expected to begin taking effect in 2016.

As communicated last quarter, cash was generated from the monetization
of the six mining trucks previously in inventory. However, further
deterioration in western Canada end markets has delayed management's
expectations for significant working capital and debt reduction into
2016. The Corporation will continue to focus on prudently managing
assets employed in the business in response to these conditions.

Management is committed to achieving Wajax's five year compounded annual
earnings growth rate objective of a minimum of 7.5%. Management's
confidence is based on the elements of Wajax's 4 Points of Growth
strategy, which include improvements in core capabilities, organic
growth programs, acquisitions and systems investments. In addition,
management sees opportunities to enhance earnings through further cost
reductions and improvements in organizational effectiveness and markets
in central and eastern Canada continue to offer the Corporation
excellent growth opportunity. While management expects improvements in
western Canada to eventually be a positive factor in the Corporation's
growth, management's focus is on executing the strategy such that Wajax
is not dependent on that recovery to achieve its goals. Management is
very pleased with how its team continues to respond to current
conditions and the Corporation is well positioned to be a stronger
growth company as its outlook period progresses.

Additional information, including Wajax's Annual Report and Annual
Information Form, are available on SEDAR at www.sedar.com.

The attached condensed consolidated financial statements have been
prepared by Management of Wajax Corporation and have not been reviewed
by the Corporation's auditors.

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

As at
(unaudited, in thousands of Canadian dollars)

Note

September30, 2015

December
31, 2014

ASSETS

CURRENT

Trade and other receivables

$

176,798

183,759

Contracts in progress

9,469

9,003

Inventories

318,976

323,764

Income taxes receivable

196

31

Prepaid expenses

6,538

7,970

Derivative instruments

1,388

1,343

513,365

525,870

NON-CURRENT

Rental equipment

3

64,681

59,394

Property, plant and equipment

4

46,144

48,665

Intangible assets

83,195

84,314

194,020

192,373

$

707,385

$

718,243

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT

Bank indebtedness

$

1,524

$

7,713

Accounts payable and accrued liabilities

192,116

246,714

Provisions

5,062

5,758

Dividends payable

6

4,996

3,356

Obligations under finance leases

3,994

4,175

207,692

267,716

NON-CURRENT

Provisions

3,335

4,250

Deferred taxes

8

58

494

Employee benefits

7,439

7,257

Other liabilities

1,123

947

Obligations under finance leases

6,607

8,160

Long-term debt

155,409

180,903

173,971

202,011

SHAREHOLDERS' EQUITY

Share capital

5

179,777

107,454

Contributed surplus

5,788

5,176

Retained earnings

139,414

135,269

Accumulated other comprehensive income

743

617

Total shareholders' equity

325,722

248,516

$

707,385

$

718,243

These condensed consolidated financial statements were approved by the
Board of Directors on November 3, 2015.

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in thousands of Canadian dollars,
except per share data)

Note

Three months ended September 30

Nine months ended September 30

2015

2014

2015

2014

Revenue

$

290,908

$

359,461

$

948,870

$

1,065,227

Cost of sales

230,315

287,159

754,894

849,383

Gross profit

60,593

72,302

193,976

215,844

Selling and administrative expenses

47,253

50,728

151,582

161,804

Restructuring costs

13

-

3,078

2,060

3,078

Earnings before finance costs and income taxes

13,340

18,496

40,334

50,962

Finance costs

2,822

3,303

9,457

9,733

Earnings before income taxes

10,518

15,193

30,877

41,229

Income tax expense

8

2,993

4,120

8,633

11,188

Net earnings

$

7,525

$

11,073

$

22,244

$

30,041

Basic earnings per share

9

$

0.38

$

0.66

$

1.23

$

1.79

Diluted earnings per share

9

$

0.37

$

0.65

$

1.21

$

1.76

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(unaudited, in thousands of Canadian dollars)

Three months ended
September 30

Nine months ended
September 30

2015

2014

2015

2014

Net earnings

$

7,525

$

11,073

$

22,244

$

30,041

Items that may be subsequently reclassified to income
(Gains) losses on derivative instruments designated
as cash flow hedges in prior periods reclassified to
cost of inventory during the period, net of tax expense
of $156 (2014 - recovery of $52) and year to date, net
of tax expense of $522 (2014 - $30)

(439)

148

(1,474)

(84)

Gains on derivative instruments outstanding at the
end of the period designated as cash flow hedges, net
of tax expense of $251 (2014 - $155) and year to
date, net of tax expense of $567 (2014 - $124)

708

438

1,600

351

Other comprehensive income, net of tax

269

586

126

267

Total comprehensive income

$

7,794

$

11,659

$

22,370

$

30,308

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN SHAREHOLDERS' EQUITY

Accumulated
other
comprehensive
income

For the nine months ended September 30, 2015
(unaudited, in thousands of Canadian dollars)

Note

Share
capital

Contributed
surplus

Retained
earnings

Cash flow
hedges

Total

December 31, 2014

$

107,454

5,176

135,269

617

$

248,516

Net earnings

-

-

22,244

-

22,244

Other comprehensive income

-

-

-

126

126

Total comprehensive income for the period

-

-

22,244

126

22,370

Issuance of common shares

5

72,278

-

-

-

72,278

Shares issued to settle share-based compensation plans

7

45

(45)

-

-

-

Dividends

6

-

-

(18,099)

-

(18,099)

Share-based compensation expense

7

-

657

-

-

657

September 30, 2015

$

179,777

5,788

139,414

743

$

325,722

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN SHAREHOLDERS' EQUITY

Accumulated
other
comprehensive
income

For the nine months ended September 30, 2014
(unaudited, in thousands of Canadian dollars)

Note

Share
capital

Contributed
surplus

Retained
earnings

Cash flow
hedges

Total

December 31, 2013

$

106,704

5,058

135,317

113

$

247,192

Net earnings

-

-

30,041

-

30,041

Other comprehensive income

-

-

-

267

267

Total comprehensive income for the period

-

-

30,041

267

30,308

Shares issued to settle share-based compensation plans

7

750

(750)

-

-

-

Dividends

6

-

-

(30,187)

-

(30,187)

Share-based compensation expense

7

-

625

-

-

625

September 30, 2014

$

107,454

4,933

135,171

380

$

247,938

WAJAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

CASH FLOWS

Three months ended
September 30

Nine months ended
September 30

(unaudited, in thousands of Canadian dollars)

Note

2015

2014

2015

2014

OPERATING ACTIVITIES

Net earnings

$

7,525

$

11,073

$

22,244

$

30,041

Items not affecting cash flow:

Depreciation and amortization:

Rental equipment

3,674

3,113

10,111

8,829

Property, plant and equipment

2,303

2,178

6,691

6,616

Intangible assets

385

379

1,170

1,264

(Gain) loss on disposal of property, plant and equipment

4

(13)

47

14

20

Share-based compensation expense

7

175

224

657

625

Non-cash rental expense

63

13

123

40

Employee benefits expense, net of payments

28

113

182

334

Unrealized (gain) loss on derivative instruments

(452)

(903)

125

(334)

Finance costs

2,822

3,303

9,457

9,733

Income tax expense

8

2,993

4,120

8,633

11,188

19,503

23,660

59,407

68,356

Changes in non-cash operating working capital

10

(4,438)

(10,932)

(41,737)

(21,131)

Rental equipment additions

3

(4,805)

(2,127)

(18,454)

(14,509)

Other non-current liabilities

(415)

514

(739)

1,491

Finance costs paid

(592)

(2,136)

(6,860)

(7,305)

Income taxes paid

(3,073)

(3,165)

(8,366)

(10,832)

Cash generated from (used in) operating activities

6,180

5,814

(16,749)

16,070

INVESTING ACTIVITIES

Property, plant and equipment additions

4

(868)

(1,795)

(3,353)

(4,039)

Proceeds on disposal of property, plant and equipment

4

39

120

322

253

Intangible assets additions

-

(21)

(51)

(40)

Cash used in investing activities

(829)

(1,696)

(3,082)

(3,826)

FINANCING ACTIVITIES

Net (decrease) increase in bank debt

(4,000)

7,000

(26,000)

12,000

Proceeds from issuance of share capital

5

-

-

71,366

-

Deferred financing costs

-

(688)

-

(688)

Finance lease payments

(882)

(847)

(2,887)

(2,660)

Dividends paid

(4,994)

(10,067)

(16,459)

(30,180)

Cash (used in) generated from financing activities

(9,876)

(4,602)

26,020

(21,528)

Change in (bank indebtedness) cash

(4,525)

(484)

6,189

(9,284)

Cash (bank indebtedness) - beginning of period

3,001

(4,647)

(7,713)

4,153

Bank indebtedness - end of period

$

(1,524)

$

(5,131)

$

(1,524)

$

(5,131)

WAJAX CORPORATION NOTES TO CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS

SEPTEMBER 30, 2015
(unaudited, amounts in thousands of Canadian dollars, except share and
per share data)

1. COMPANY PROFILE

Wajax Corporation (the "Corporation") is incorporated in Canada. The
address of the Corporation's registered office is 3280 Wharton Way,
Mississauga, Ontario, Canada. The Corporation is a leading Canadian
distributor engaged in the sale and service support of mobile
equipment, power systems and industrial components. Reflecting a
diversified exposure to the Canadian economy, the Corporation has three
distinct product divisions which operate through a network of 124
branches across Canada.

The Corporation's customer base covers core sectors of the Canadian
economy, including construction, industrial and commercial,
transportation, the oil sands, forestry, oil and gas, metal processing
and mining.

2. BASIS OF PREPARATION

Statement of compliance
These condensed consolidated financial statements have been prepared in
accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting and do not include all of the disclosures required for full
consolidated financial statements. Accordingly, these condensed
consolidated financial statements should be read in conjunction with
the audited consolidated financial statements of the Corporation for
the year ended December 31, 2014. The significant accounting policies
follow those disclosed in the most recently reported audited
consolidated financial statements.

Basis of measurement
The condensed financial statements have been prepared under the
historical cost basis except for derivative financial instruments and
liabilities for cash-settled share-based payment arrangements that have
been measured at fair value. The defined benefit liability is
recognized as the net total of the fair value of the plan assets and
the present value of the defined benefit obligation.

Functional and presentation currency
These condensed consolidated financial statements are presented in
Canadian dollars, which is the Corporation's functional currency. All
financial information presented in Canadian dollars has been rounded to
the nearest thousand, unless otherwise stated and except share and per
share data.

3. RENTAL EQUIPMENT

The Corporation acquired rental equipment with a cost of $4,805 during
the quarter (2014 - $2,127) and $18,454 year to date (2014 - $14,509).
Equipment with a carrying amount of $1,683 during the quarter (2014 -
$2,423) and $5,281 year to date (2014 - $19,079) was transferred from
inventories to rental equipment. Equipment with a carrying amount of
$1,669 during the quarter (2014 - $3,460) and $8,337 year to date (2014
- $21,700) was transferred from rental equipment to inventories.

4. PROPERTY, PLANT AND EQUIPMENT

The Corporation acquired property, plant and equipment with a cost of
$868 during the quarter (2014 - $1,795) and $3,353 year to date (2014 -
$4,039). Assets with a carrying amount of $26 during the quarter (2014
- $167) and $336 year to date (2014 - $273) were disposed of, resulting
in a gain on disposal of $13 during the quarter (2014 - loss of $47)
and a loss of $14 year to date (2014 - loss of $20).

5. SHARE CAPITAL

Number of
Common Shares

Amount

Balance, December 31, 2014

16,778,883

$

107,454

Issuance of common shares

3,197,000

72,278

Common shares issued to settle share-based compensation plans

7

6,677

45

Balance, September 30, 2015

19,982,560

$

179,777

On June 12, 2015, the Corporation completed a public offering of
3,197,000 common shares of the Corporation at a price of $23.40 per
common share, for aggregate gross proceeds of approximately $74,810.
The Corporation paid issuance costs and professional fees related to
the offering in the amount of $2,532, net of deferred tax expense of
$912.

6. DIVIDENDS DECLARED

During the quarter, the Corporation declared cash dividends of $0.25 per
share or $4,996 (2014 - dividends of $0.60 per share or $10,067).

Year to date, the Corporation declared cash dividends of $0.9833 per
share or $18,099 (2014 - dividends of $1.80 per share or $30,187).

On November 3, 2015, the Corporation declared a dividend of $0.25 per
share or $4,996 for the fourth quarter of 2015.

The Corporation recorded compensation cost of $134 for the quarter (2014
- $216) and $1,375 for the year to date (2014 - $512) in respect of the
share-based portion of the MTIP and DSUP. At September 30, 2015, the
carrying amount of the share-based portion of these liabilities was
$918 (September 30, 2014 - $669).

8. INCOME TAXES

Income tax expense comprises current and deferred taxes as follows:

For the nine months ended September 30

2015

2014

Current

$

8,201

$

9,735

Deferred - Origination and reversal of temporary differences

432

1,453

Income tax expense

$

8,633

$

11,188

The calculation of current tax is based on a combined federal and
provincial statutory income tax rate of 26.5% (2014 - 26.1%). Deferred
tax assets and liabilities are measured at tax rates that are expected
to apply to the period when the asset is realized or the liability is
settled. Deferred tax assets and liabilities have been measured using
an expected average combined statutory income tax rate of 26.9% based
on the tax rates in years when the temporary differences are expected
to reverse.

The reconciliation of effective income tax rate is as follows:

2015

2014

Combined statutory income tax rate

26.5%

26.1%

Expected income tax expense at statutory rates

$

8,182

$

10,761

Non-deductible expenses

430

446

Other

21

(19)

Income tax expense

$

8,633

$

11,188

9. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted
earnings per share:

Three months ended
September 30

Nine months ended
September 30

2015

2014

2015

2014

Numerator for basic and diluted earnings per share:

- net earnings

$

7,525

$

11,073

$

22,244

$

30,041

Denominator for basic earnings per share:

- weighted average shares

19,978,351

16,778,883

18,079,594

16,770,709

Denominator for diluted earnings per share:

- weighted average shares

19,978,351

16,778,883

18,079,594

16,770,709

- effect of dilutive share rights

307,248

262,066

299,736

259,977

Denominator for diluted earnings per share

20,285,599

17,040,949

18,379,330

17,030,686

Basic earnings per share

$

0.38

$

0.66

$

1.23

$

1.79

Diluted earnings per share

$

0.37

$

0.65

$

1.21

$

1.76

No share rights were excluded from the above calculations as all share
rights are dilutive.

10. CHANGES IN NON-CASH OPERATING WORKING CAPITAL

Three months ended
September 30

Nine months ended
September 30

2015

2014

2015

2014

Trade and other receivables

$

(5,598)

$

(13,834)

$

6,961

$

(14,139)

Contracts in progress

4,094

6,053

(466)

(5,396)

Inventories

9,960

(18,826)

7,844

(30,917)

Prepaid expenses

2,509

(1,354)

1,432

(2,164)

Accounts payable and accrued liabilities

(15,331)

16,803

(56,812)

33,463

Provisions

(72)

226

(696)

(1,978)

Total

$

(4,438)

$

(10,932)

$

(41,737)

$

(21,131)

11. RELATED PARTY TRANSACTION

Certain directors and key management personnel participated in the
public offering of common shares (Note 5), purchasing a total of 42,000
common shares for consideration of $983.

12. OPERATING SEGMENTS

The Corporation operates through a network of 124 branches in Canada in
three core businesses which reflect the internal organization and
management structure according to the nature of the products and
services provided. The Corporation's three core businesses are: i) the
distribution, modification and servicing of equipment; ii) the
distribution, servicing and assembly of power systems; and iii) the
distribution, servicing and assembly of industrial components.

During the year, restructuring costs of $2,060 were recorded in the
Power Systems segment. The restructuring will realign branch support
activities, including the centralization of supply chain management,
and provides for initial savings related to the consolidation of the
Wajax computer platforms. It is anticipated that the restructuring will
be complete by the first quarter of 2016.

14. COMPARATIVE INFORMATION

Certain comparative information has been reclassified to conform to the
current year's presentation.

E&Ps Locking in Cash Flows and Sales Prices OPEC’s agreement to cut production levels has kicked off a rush among shale oil companies to hedge their oil price risk above $50 for 2017 and 2018. The number of E&Ps selling oil for delivery next year has pushed the WTI forward curve into slight backwardation after two years of contango. Compare[Read More…]